Subcontractor Agreement Template

Construction Subcontractor Agreement

EMP.CONT.05

This Construction Subcontractor Agreement is designed for use in the construction industry by main contractors wishing to take on other independent trades-people. It is suitable for all small scale construction projects. It provides for a one-off payment to be made on completion of the works.

The drafting of the agreement aims to reflect the law relating to the self-employed status of an individual sub-contractor in the building trade and to reduce the risk that he might be deemed a de-facto employee of the main contractor rather than a self-employed sub-contractor, but whether in law he is self-employed rather than an employee will depend on all of the circumstances (not just on the terms of the sub-contract).

If the subcontractor is deemed by HMRC to be an employee, he will be subject to different levels of tax and National Insurance Contributions. Furthermore, the payment of income tax and National Insurance will be the responsibility of the main contractor that hired the subcontractor.

Further guidance on tax status of individual sub-contractors can be found on the information page for the forms of sub-contract in this Sub-Contractor subfolder but we recommend that you take professional tax and legal advice before using this Agreement template.

The agreement includes provisions relating to the Construction Industry Scheme (CIS). This is a HM Revenue & Customs scheme that governs how contractors in the construction industry must handle payments to their sub-contractors. Further information can be found on the Gov UK website.

This template is written from the perspective of a company as the main contractor. The contractor does not have to be a company and any references to this can be changed without altering the meaning or purpose of the document.

A wider range of construction sub-contractor agreements can be found in the Property and Business folders.

This Construction Subcontractor Agreement contains the following clauses:
1. Engagement of the Subcontractor
2. Indemnity
3. Provision of Equipment and Protective Clothing
4. Status of Sub contractor
5. Consideration
6. Non-competition and non-solicitation
7. Termination
8. Miscellaneous (Notices etc)
9. Governing Law and Jurisdiction

This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

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